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Average Broker Rating Watch for Hewlett Packard Enterprise Company (NYSE:HPE)

Analysts often provide buy/sell/hold recommendations for companies that they cover. Investors have the ability to follow these sell-side ratings in order to assist with stock analysis. Wall Street analyst ratings may have various interpretations. According to analysts taken into consideration by Zacks Research, the current average broker recommendation on shares of Hewlett Packard Enterprise Company (NYSE:HPE) is currently -27.54. This rating lands on a scale between 1 and 5. Following this scale, a rating of 1 would indicate a Strong Buy, and a rating of 5 would indicate a Strong Sell recommendation. Out of all the analysts providing ratings, 16 have rated the stock a Strong Buy or Buy, according to Zacks Research. 

Some investors may be lamenting the fact that they have not taken full advantage of the long bull run. There are plenty of pundits that are calling for a sharp stock market decline, but there are also many who believe that the ceiling has been raised and there is much more room for stocks to go higher. Getting into the market at these levels may be holding some investors back from jumping into the fray, and nobody can be sure which way the momentum will swing as we near the end of the year. The next round of company earnings reports should provide some good information about future prospects. Investors will be closely watching to see which sectors are running at full speed and which ones are lagging. 

Taking a quick look at the current quarter EPS consensus estimate for Hewlett Packard Enterprise Company (NYSE:HPE), we can see that the most recent level is sitting at 0.36. This EPS projection uses 6 Sell-Side analysts polled by Zacks Research. For the previous reported quarter, the company posted a quarterly EPS of 0.44. Covering analysts have the tough job of following companies and offering future estimates. These estimates are often closely followed on the Street, and earnings beats or misses revolve around these projections. Sometimes these predictions are extremely close to the actual reported number, and other times they may be way off. When a company posts actual earnings numbers, the surprise factor can lead to sudden stock price fluctuations. If a company meets and beats estimates and posts a positive earnings surprise, the stock may see a near-term bump. On the other end, a negative surprise may send the stock in the opposite direction. Many investors will choose to trade with caution around earnings releases and wait to make a move until after the major activity has subsided.

Zooming in on recent stock price action for Hewlett Packard Enterprise Company (NYSE:HPE), we note that shares are trading near the 8.53 level. Investors will often follow stock price levels in relation to the 52-week high and low levels. The 52-week high is presently 17.46, and the 52-week low is sitting at 8.27. When a stock price is getting close to either the 52-week high or 52-week low, investors may track activity to watch for a move past the established mark. Over the last 12 weeks, shares have seen a change of -41.05%. Heading further back to the start of the year, we note that shares have seen a change of -46.42%. Focusing in closer to the last 4 weeks, shares have seen a change of 0.32501%. Over the past five trading days, the stock has changed 79%.

Even though the stock market has been cranking along and touching record highs, there are bound to be some rough patches in the near future. Some investors may actually welcome a pullback in order to scoop up some stocks at a relative discount. Investors who are on top of things are most likely ready to spring when the next big buying opportunity pops up. Being prepared for a buying opportunity can make the process much easier when the time comes. As investors look ahead to the next round of company earnings reports, the focus may gravitate to those companies that have positioned themselves for sustained future growth. Many investors will be closely monitoring which companies outperform by the largest margin after earnings results are released.

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Business

Are Analysts Holding ExlService Holdings, Inc. (NASDAQ:EXLS) in High Regard?

Sell-side analysts often undertake stock analysis to give their opinions of whether they believe that shares should be bought, sold, or held. Using ratings provided by analysts to Zacks Research, we can see that the current average broker rating on shares of ExlService Holdings, Inc. (NASDAQ:EXLS) is currently -13.84. This consensus rating uses a number scale from 1 to 5. A low number between 1 and 2 indicates a Buy or Strong Buy.  A 3 rating would represent a Hold, while a 4 or 5 indicates a Sell rating. After a recent check, we can see that 9 sell-side analysts have rated the stock a Strong Buy or Buy, based analysts polled by Zacks Research.

Making the tough buy or sell portfolio decisions is a typical challenge that most investors will eventually face. Trying to separate fact from emotion when making these decisions can be hard. It may be very difficult to part ways with a previously prized stock. Investors may have a checklist that includes certain criteria for portfolio evaluation purposes. When certain stocks no longer meet the guidelines, they may need to be cut loose. This is often easier said than done, especially when a stock has provided a large boost to the portfolio in the past. Investors who are able to successfully keep emotional attachment out of the stock picking process may give themselves a leg up compared to those who are not.   

Sell-side Wall Street analysts will commonly offer stock price target estimates. Many investors pay close attention to where the analysts project the stock moving in the future. After a recent scan, we can see that analysts polled by Zacks Research have set a consensus price target of $77.2 on shares of ExlService Holdings, Inc. (NASDAQ:EXLS). Price target estimates can be calculated using various methods, and they may be quite different depending on the individual analyst. A fully researched analyst report will generally provide detailed reasoning for a specific target price prediction. Some investors may track analyst targets very closely and use the information to complement their own stock research.

Taking a quick look at the current quarter EPS consensus estimate for ExlService Holdings, Inc. (NASDAQ:EXLS), we can see that the most recent level is sitting at 0.82. This EPS projection uses 7 Sell-Side analysts polled by Zacks Research. For the previous reported quarter, the company posted a quarterly EPS of 0.79. Covering analysts have the tough job of following companies and offering future estimates. These estimates are often closely followed on the Street, and earnings beats or misses revolve around these projections. Sometimes these predictions are extremely close to the actual reported number, and other times they may be way off. When a company posts actual earnings numbers, the surprise factor can lead to sudden stock price fluctuations. If a company meets and beats estimates and posts a positive earnings surprise, the stock may see a near-term bump. On the other end, a negative surprise may send the stock in the opposite direction. Many investors will choose to trade with caution around earnings releases and wait to make a move until after the major activity has subsided.

Zooming in on recent stock price action for ExlService Holdings, Inc. (NASDAQ:EXLS), we note that shares are trading near the 44.42 level. Investors will often follow stock price levels in relation to the 52-week high and low levels. The 52-week high is presently 79.6, and the 52-week low is sitting at 44.42. When a stock price is getting close to either the 52-week high or 52-week low, investors may track activity to watch for a move past the established mark. Over the last 12 weeks, shares have seen a change of -43.46%. Heading further back to the start of the year, we note that shares have seen a change of -37.06%. Focusing in closer to the last 4 weeks, shares have seen a change of 1.59013%. Over the past five trading days, the stock has changed 145%.

When it comes to trading stocks, even veteran investors are prone to making mistakes. Investors will often get bombarded with stock tips touting the next breakout star. Following these tips without fully looking into the situation can wind up being a huge mistake. If even one person knows about the next big stock, chances are many other people already do as well. Getting in too late on a stock that has already made a move can leave investors wondering what went wrong. Taking the time to properly research any stock investment may be a good way to eliminate costly impulse buys. Just because a stock has been running hot doesn’t mean it will continue to go higher in the future.

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Business

Analyst Consensus Ratings Watch for Kansas City Southern (NYSE:KSU)

Analysts often provide buy/sell/hold recommendations for companies that they cover. Investors have the ability to follow these sell-side ratings in order to assist with stock analysis. Wall Street analyst ratings may have various interpretations. According to analysts taken into consideration by Zacks Research, the current average broker recommendation on shares of Kansas City Southern (NYSE:KSU) is currently -3.84. This rating lands on a scale between 1 and 5. Following this scale, a rating of 1 would indicate a Strong Buy, and a rating of 5 would indicate a Strong Sell recommendation. Out of all the analysts providing ratings, 13 have rated the stock a Strong Buy or Buy, according to Zacks Research. 

Some investors may be lamenting the fact that they have not taken full advantage of the long bull run. There are plenty of pundits that are calling for a sharp stock market decline, but there are also many who believe that the ceiling has been raised and there is much more room for stocks to go higher. Getting into the market at these levels may be holding some investors back from jumping into the fray, and nobody can be sure which way the momentum will swing as we near the end of the year. The next round of company earnings reports should provide some good information about future prospects. Investors will be closely watching to see which sectors are running at full speed and which ones are lagging. 

Taking a quick look at the current quarter EPS consensus estimate for Kansas City Southern (NYSE:KSU), we can see that the most recent level is sitting at 1.74. This EPS projection uses 5 Sell-Side analysts polled by Zacks Research. For the previous reported quarter, the company posted a quarterly EPS of 1.82. Covering analysts have the tough job of following companies and offering future estimates. These estimates are often closely followed on the Street, and earnings beats or misses revolve around these projections. Sometimes these predictions are extremely close to the actual reported number, and other times they may be way off. When a company posts actual earnings numbers, the surprise factor can lead to sudden stock price fluctuations. If a company meets and beats estimates and posts a positive earnings surprise, the stock may see a near-term bump. On the other end, a negative surprise may send the stock in the opposite direction. Many investors will choose to trade with caution around earnings releases and wait to make a move until after the major activity has subsided.

Zooming in on recent stock price action for Kansas City Southern (NYSE:KSU), we note that shares are trading near the 109.32 level. Investors will often follow stock price levels in relation to the 52-week high and low levels. The 52-week high is presently 177.2, and the 52-week low is sitting at 109.32. When a stock price is getting close to either the 52-week high or 52-week low, investors may track activity to watch for a move past the established mark. Over the last 12 weeks, shares have seen a change of -38.02%. Heading further back to the start of the year, we note that shares have seen a change of -28.67%. Focusing in closer to the last 4 weeks, shares have seen a change of 0.61835%. Over the past five trading days, the stock has changed 156%.

Even though the stock market has been cranking along and touching record highs, there are bound to be some rough patches in the near future. Some investors may actually welcome a pullback in order to scoop up some stocks at a relative discount. Investors who are on top of things are most likely ready to spring when the next big buying opportunity pops up. Being prepared for a buying opportunity can make the process much easier when the time comes. As investors look ahead to the next round of company earnings reports, the focus may gravitate to those companies that have positioned themselves for sustained future growth. Many investors will be closely monitoring which companies outperform by the largest margin after earnings results are released.

Categories
Business

Wall Street ignores Corona virus to rally higher

Futures are way up this morning. The SPY is currently sitting at 328.25  in the premarket. In pre-market since yesterday it has done nothing but rise. In the premarket charts at the moment we see that the 10 moving average line is slightly above the 20 moving average line on 5,10 and 15 minute charts. Additionally, and important to notice, the buying volume is much higher than yesterday.

The SPY seems to be headed for a big gap up here of potentially 4 points. It will be hard to fight against this moment this morning, so I am going with Calls. However, in the past, when we have experienced big gap ups like this, sometimes people take profits at open so the SPY could fall in the beginning. On the other side, I think shorts are getting squeezed out here and we could see the SPY back at 330 soon. If it drops, I would wait for a reversal off support line or if it just moves sides ways I’ll look for buying volume to confirm my decision.  In order for this trading plan to be in play SPY must remain trading above that key support level near 326.19. If I see this it would trigger a buy to open followed by sell to close CALL option move today. Finally, know that because of recent volatility, these options will be more expensive than usual. Resistance:  328.28, 328.62, 328.97

Support: 328, 327.75, 327.54

Today’s Trade of The Day is SPY February 7 329 CALLS

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Business

Wall Street echoes SPY January 29, 333 Calls

Futures remain green this morning and the SPY has moved up overnight.

The SPY is currently sitting at 332.55 in the premarket having bounced off resistance at almost 333 and support at 332.42. It has moved in that range all morning. In the premarket charts at the moment we see that the 10 moving average line is slightly above the 20 moving average line on the 5 minute chart,  but below it on 10, and 15 minute chart. A mixed signal.

Additionally, buying volume is much lower at this point than it was yesterday. But two volume spikes this morning were buying spikes. The SPY has been trending higher and we are currently looking at potential gap up of a full point.  So the SPY is in that in between place here so I’ll look to play the longer term and overnight trend up today. If that buying volume comes in prior to open and If the SPY pops, it will be a quick text from me. But if it drops, I would wait for a bounce off resistance or if it just moves sides ways I’ll look for buying volume to confirm my decision. 

In order for this trading plan to be in play SPY must remain trading above that key support level near $332.20. If I see this it would trigger a buy to open followed by sell to close CALL option move today.

Resistance:  332.64, 332.74, 332.84 Support: 332.42, 332.30, 332.17

Today’s Trade of The Day is SPY January 29 333 Call
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Business

SPY finally gives in to the bears

We saw SPY fall yesterday and keep going lower overnight. The SPY is currently sitting at 330.90 in the pre-market having bounced off support at 330.50 a few times.

In the premarket charts at the moment we see that the 10 moving average line is below the 20 moving average lines on the 5, 10, and 15-minute chart. A downward signal. In addition, buying volume is elevated from at this point than it was yesterday.

The SPY has been trending higher but as I showed in the pre-market video it’s sitting on the 3 moving average line on the daily which. A moving average line that has turned sideways.  Futures are down, overseas markets are down and we currently are looking at a gap down of a half-point. So the SPY is in a tricky place to trade here.

Does this dip get bought up or does it continue to fade lower. I’ll play this one by indicators pointing down. If the SPY pops for some reason I would wait for a bounce off resistance or if it just moves sides ways I’ll look for buying volume to confirm my decision. In order for this trading plan to be in play SPY must remain trading below that key resistance level near $331.37. If I see this it would trigger a buy to open followed by sell to close PUT option move today.


As a reminder, I encourage you, if you do jump in, manage your stop loss according to your tolerance.

Resistance:  330.93, 331.15, 331.31

Support: 330.70, 330.61, 330.49

Today’s Trade of The Day is SPY January 29 330 Puts
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Business

GoPro Inc (NASDAQ: GPRO) could heat up

GoPro Inc (NASDAQ: GPRO) is not a Wall Street favorite. But, that is exactly why I’m giving it a shot through earnings. It’s been thrown into the garbage can and absolutely nobody likes it.

First off, holding anything through earnings is of course an inherent big gamble. So make sure your risk tolerance is something you can handle if you are playing ANYTHING through earnings.

Ok, so a few reasons why I like this trade:

  1. GPRO is hated. Nobody likes it and nobody expects anything good. We are contrarians, which leads to huge pops when correct.
  2. There is a large short interest of 26% and the options are really cheap to hold through earnings at .36 a contract. Good news and GPRO can easily double in valuation in my opinion.
  3. In part of the China trade deal, China is set to enforce laws that prevent “knock offs” of intellectual property. That’s one of GPRO’s biggest problems. They have no protection for their product. If pushed through, this change in policy would allow that. I expect GPRO to talk about that on their call.
  4. They just came out with a new 360 degree camera that is quite honestly the best product I’ve seen out there if you are into action filming. I think people are going to be surprised with the holiday sales numbers there.
  5. And, the chart is technically sound for a breakout. Bull flag and relative strength after the Las Vegas CES conference earlier this month.
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Business

Advanced Micro Devices, Inc. (NASDAQ:AMD) run ahead and earnings

Advanced Micro Devices, Inc. (NASDAQ:AMD)is gaining pace ahead of earnings.

Tech savvy traders seem to be playing the 130min chart but looking for a run higher into earnings and specifically buying the calls that expire the week of earnings. 

The idea here is that we’ll get a rise in the price of the option through the delta (if we are right and AMD goes higher) and we’ll also get a rise in the price of the option due to the increasing IV (implied volatility) due to the fact that the IV tends to go up into earnings.  If you don’t know, the IV determines the amount of premium in options.  Anyway, here is the trade and the chart setup:

A perfect trade would be Earnings Run: AMD 31 JAN 20 50 CALL @1.47
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Business

Iran blinked and the markets are happy

Iran blinked and the markets are happy that there is no looming war or disruption in oil on the horizon (certainty).  In looking at the charts, you will notice that we have had a sort of sideways action with little steps higher on the daily chart.  As much as it seems like we are going up every day, we are really going up and down and staying in a range overall.  This is more of what we expected with the weekly chart energy being now down to 24. 

In fact, you can see on the weekly chart below that we have had essentially a sideways move the last 3 weeks.  The trend is slowing and starting to walk more sideways in a range giving the flat, subdued market that I mentioned.  We will have good up days and down days that match each other but trending another 200-300 pts. on the S&P is going to be tough right now.  

This type of market is great to burn time on our positions helping us profit faster and with the swings up and down, it allows us to get filled on some of the extrapolation orders we have put in place, like the AMZN call spread order this week. 

It looked into Tuesday AM like we might have to adjust the fill price to get it, but then we had the spike up in AMZN and just got briefly above the $4.00 mark long enough to fill.  Now AMZN is back down about 25 pts. from that level.  In fact, all our new trades for the week have filled (ISRG, AMZN, ABMD roll, CLR roll).


So, what now?  I would not be surprised to see the market chop up and down through the end of the week.  The daily chart is fully charged again, but I don’t think it can really trend straight up because of the weekly chart exhaustion.  As I mentioned in last weekend’s newsletter, we are waiting for the market to tell us which way it wants to go for the next month or so.  We may see that by the end of the week or into early next week.